Audit 312253

FY End
2022-12-31
Total Expended
$3.39M
Findings
38
Programs
11
Organization: Community Youth Services (WA)
Year: 2022 Accepted: 2023-10-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
420261 2022-001 Significant Deficiency Yes P
420262 2022-001 Significant Deficiency Yes P
420263 2022-001 Significant Deficiency Yes P
420264 2022-001 Significant Deficiency Yes P
420265 2022-001 Significant Deficiency Yes P
420266 2022-001 Significant Deficiency Yes P
420267 2022-001 Significant Deficiency Yes P
420268 2022-001 Significant Deficiency Yes P
420269 2022-001 Significant Deficiency Yes P
420270 2022-001 Significant Deficiency Yes P
420271 2022-001 Significant Deficiency Yes P
420272 2022-001 Significant Deficiency Yes P
420273 2022-001 Significant Deficiency Yes P
420274 2022-001 Significant Deficiency Yes P
420275 2022-001 Significant Deficiency Yes P
420276 2022-003 Material Weakness Yes E
420277 2022-003 Material Weakness Yes E
420278 2022-001 Significant Deficiency Yes P
420279 2022-001 Significant Deficiency Yes P
996703 2022-001 Significant Deficiency Yes P
996704 2022-001 Significant Deficiency Yes P
996705 2022-001 Significant Deficiency Yes P
996706 2022-001 Significant Deficiency Yes P
996707 2022-001 Significant Deficiency Yes P
996708 2022-001 Significant Deficiency Yes P
996709 2022-001 Significant Deficiency Yes P
996710 2022-001 Significant Deficiency Yes P
996711 2022-001 Significant Deficiency Yes P
996712 2022-001 Significant Deficiency Yes P
996713 2022-001 Significant Deficiency Yes P
996714 2022-001 Significant Deficiency Yes P
996715 2022-001 Significant Deficiency Yes P
996716 2022-001 Significant Deficiency Yes P
996717 2022-001 Significant Deficiency Yes P
996718 2022-003 Material Weakness Yes E
996719 2022-003 Material Weakness Yes E
996720 2022-001 Significant Deficiency Yes P
996721 2022-001 Significant Deficiency Yes P

Contacts

Name Title Type
K2RZJM3HAXM9 Derek Harris Auditee
3609187874 Martha A Lindley CPA Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Community Youth Services under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Community Youth Services, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Community Youth Services. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Note 2. Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Community Youth Services has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance as they have an approved indirect cost rate of 13.73%.

Finding Details

Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings and Questioned Costs for Federal AwardsC. Compliance FindingsCompliance findings relating to the major federal awards as required to be reported in accordance with Section 2 CFR-20.516(a) are:Department of the TreasuryAgency Rental Assistance ? CFDA 21.023See Finding 2021-001Questioned costs: $31,726Finding 2021-003 The Organization did not ensure that rental assistance payments were made to applicants with adequate third-party documentation of eligibility. No secondary review of the files was performed by supervisory personnel for the required compliance criteria and the checks issued were not reviewed in conjunction with the review of the application packet.Federal Awarding agency: US Department of the TreasuryPass-Through Entity: WA Department of Commerce2021-ComTRAP-CYS-RAApplicable Compliance Component: Eligibility and Internal ControlKnown Questioned Cost Amount: Application incorrect $ 9,169Incorrect number of months paid $22,557Total questioned costs $31,726Condition:We found the Organization had inadequate internal controls to ensure material compliance with the eligibility requirements. The program requires forms that must be completed and contemporaneously signed and dated. Case managers may take verbal information and are held to the same standard of contemporaneously signing and dating of the applicable documentation. From a random sample of 25 files from the 210 applicants, four files out of 25 (16%) did not contain adequate third-party supporting documentation to support eligibility. From that same sample, eight out of 25 files (32%) paid the incorrect amount of rent. There was no secondary review of files performed by supervisory personnel, so incomplete files were not corrected prior to the issuance of rental assistance payments. The check request for rental assistance payments was approved by the same person preparing the applicant file. Check signing supervisory personnel also did not review the applicant file.The prior year audit report was issued September 2022, the program ended June 2022. Therefore, the Organization did not have adequate time to implement any changes to the program.Cause: The Organization developed program guidelines, but did not incorporate adequate internal controls to ensure the compliance criteria that third-party evidence of existence was complete.Criteria:WA Department of Commerce Guidelines for the Treasury Rent Assistance Program (T-RAP), Version 4 August 2022:4.3.1 RentHouseholds can receive assistance with only future rent if the households do not have rental arrears and/or the provider has already assisted the household with rental arrears.An additional three months of future rent assistance can be provided if the household reapplies and is still experiencing housing instability, and has not already received the maximum amount of assistance.5.1 Documenting Household StatusHouseholds must demonstrate a risk of experiencing homelessness or housing instability. This MUST (auditor emphasis) be documented and may include:?Self-declaration signed and dated by the applicant. . .5.2 Documenting Income?. Adult household members that have no income can complete a self-declaration signed and dated by the applicant. A verbal verification of no income is allowable and MUST (auditor emphasis) be signed and dated by the case manager making the call.6.2 Payment Agreement FormThe Commence T-RAP Payment agreement Form MUST (auditor emphasis) be completed for households seeking financial assistance.Effect: From the sample audited, forty-four percent (44%) of the applicant files lacked adequate document to determine eligibility. Those files resulted in $85,414 in questioned costs in rental payment disbursements. Federal regulations require the auditor to issue a finding when the known or estimated questioned costs in a Singe Audit exceed $25,000.We question costs when we find an organization has not complied with grant regulations or when it does not have adequate documented to support expenditures.Recommendation:We recommend the Organization:? Establish internal controls to obtain adequate third-party evidence to support eligibility. This documentation is to be signed by the applicant and the landlord, the one exception is the case manager may sign, but must accept responsibility that the information is complete.? Supervisory personnel should perform a secondary review of files and provide contemporaneous documentation of such review.? Supervisory personnel in accounting should perform a secondary review of payment requests to supporting documentation.? Consult with the third-party US Department of the Treasury regarding whether the known questioned cost identified should be repaid.
Findings and Questioned Costs for Federal AwardsC. Compliance FindingsCompliance findings relating to the major federal awards as required to be reported in accordance with Section 2 CFR-20.516(a) are:Department of the TreasuryAgency Rental Assistance ? CFDA 21.023See Finding 2021-001Questioned costs: $31,726Finding 2021-003 The Organization did not ensure that rental assistance payments were made to applicants with adequate third-party documentation of eligibility. No secondary review of the files was performed by supervisory personnel for the required compliance criteria and the checks issued were not reviewed in conjunction with the review of the application packet.Federal Awarding agency: US Department of the TreasuryPass-Through Entity: WA Department of Commerce2021-ComTRAP-CYS-RAApplicable Compliance Component: Eligibility and Internal ControlKnown Questioned Cost Amount: Application incorrect $ 9,169Incorrect number of months paid $22,557Total questioned costs $31,726Condition:We found the Organization had inadequate internal controls to ensure material compliance with the eligibility requirements. The program requires forms that must be completed and contemporaneously signed and dated. Case managers may take verbal information and are held to the same standard of contemporaneously signing and dating of the applicable documentation. From a random sample of 25 files from the 210 applicants, four files out of 25 (16%) did not contain adequate third-party supporting documentation to support eligibility. From that same sample, eight out of 25 files (32%) paid the incorrect amount of rent. There was no secondary review of files performed by supervisory personnel, so incomplete files were not corrected prior to the issuance of rental assistance payments. The check request for rental assistance payments was approved by the same person preparing the applicant file. Check signing supervisory personnel also did not review the applicant file.The prior year audit report was issued September 2022, the program ended June 2022. Therefore, the Organization did not have adequate time to implement any changes to the program.Cause: The Organization developed program guidelines, but did not incorporate adequate internal controls to ensure the compliance criteria that third-party evidence of existence was complete.Criteria:WA Department of Commerce Guidelines for the Treasury Rent Assistance Program (T-RAP), Version 4 August 2022:4.3.1 RentHouseholds can receive assistance with only future rent if the households do not have rental arrears and/or the provider has already assisted the household with rental arrears.An additional three months of future rent assistance can be provided if the household reapplies and is still experiencing housing instability, and has not already received the maximum amount of assistance.5.1 Documenting Household StatusHouseholds must demonstrate a risk of experiencing homelessness or housing instability. This MUST (auditor emphasis) be documented and may include:?Self-declaration signed and dated by the applicant. . .5.2 Documenting Income?. Adult household members that have no income can complete a self-declaration signed and dated by the applicant. A verbal verification of no income is allowable and MUST (auditor emphasis) be signed and dated by the case manager making the call.6.2 Payment Agreement FormThe Commence T-RAP Payment agreement Form MUST (auditor emphasis) be completed for households seeking financial assistance.Effect: From the sample audited, forty-four percent (44%) of the applicant files lacked adequate document to determine eligibility. Those files resulted in $85,414 in questioned costs in rental payment disbursements. Federal regulations require the auditor to issue a finding when the known or estimated questioned costs in a Singe Audit exceed $25,000.We question costs when we find an organization has not complied with grant regulations or when it does not have adequate documented to support expenditures.Recommendation:We recommend the Organization:? Establish internal controls to obtain adequate third-party evidence to support eligibility. This documentation is to be signed by the applicant and the landlord, the one exception is the case manager may sign, but must accept responsibility that the information is complete.? Supervisory personnel should perform a secondary review of files and provide contemporaneous documentation of such review.? Supervisory personnel in accounting should perform a secondary review of payment requests to supporting documentation.? Consult with the third-party US Department of the Treasury regarding whether the known questioned cost identified should be repaid.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings and Questioned Costs for Federal AwardsC. Compliance FindingsCompliance findings relating to the major federal awards as required to be reported in accordance with Section 2 CFR-20.516(a) are:Department of the TreasuryAgency Rental Assistance ? CFDA 21.023See Finding 2021-001Questioned costs: $31,726Finding 2021-003 The Organization did not ensure that rental assistance payments were made to applicants with adequate third-party documentation of eligibility. No secondary review of the files was performed by supervisory personnel for the required compliance criteria and the checks issued were not reviewed in conjunction with the review of the application packet.Federal Awarding agency: US Department of the TreasuryPass-Through Entity: WA Department of Commerce2021-ComTRAP-CYS-RAApplicable Compliance Component: Eligibility and Internal ControlKnown Questioned Cost Amount: Application incorrect $ 9,169Incorrect number of months paid $22,557Total questioned costs $31,726Condition:We found the Organization had inadequate internal controls to ensure material compliance with the eligibility requirements. The program requires forms that must be completed and contemporaneously signed and dated. Case managers may take verbal information and are held to the same standard of contemporaneously signing and dating of the applicable documentation. From a random sample of 25 files from the 210 applicants, four files out of 25 (16%) did not contain adequate third-party supporting documentation to support eligibility. From that same sample, eight out of 25 files (32%) paid the incorrect amount of rent. There was no secondary review of files performed by supervisory personnel, so incomplete files were not corrected prior to the issuance of rental assistance payments. The check request for rental assistance payments was approved by the same person preparing the applicant file. Check signing supervisory personnel also did not review the applicant file.The prior year audit report was issued September 2022, the program ended June 2022. Therefore, the Organization did not have adequate time to implement any changes to the program.Cause: The Organization developed program guidelines, but did not incorporate adequate internal controls to ensure the compliance criteria that third-party evidence of existence was complete.Criteria:WA Department of Commerce Guidelines for the Treasury Rent Assistance Program (T-RAP), Version 4 August 2022:4.3.1 RentHouseholds can receive assistance with only future rent if the households do not have rental arrears and/or the provider has already assisted the household with rental arrears.An additional three months of future rent assistance can be provided if the household reapplies and is still experiencing housing instability, and has not already received the maximum amount of assistance.5.1 Documenting Household StatusHouseholds must demonstrate a risk of experiencing homelessness or housing instability. This MUST (auditor emphasis) be documented and may include:?Self-declaration signed and dated by the applicant. . .5.2 Documenting Income?. Adult household members that have no income can complete a self-declaration signed and dated by the applicant. A verbal verification of no income is allowable and MUST (auditor emphasis) be signed and dated by the case manager making the call.6.2 Payment Agreement FormThe Commence T-RAP Payment agreement Form MUST (auditor emphasis) be completed for households seeking financial assistance.Effect: From the sample audited, forty-four percent (44%) of the applicant files lacked adequate document to determine eligibility. Those files resulted in $85,414 in questioned costs in rental payment disbursements. Federal regulations require the auditor to issue a finding when the known or estimated questioned costs in a Singe Audit exceed $25,000.We question costs when we find an organization has not complied with grant regulations or when it does not have adequate documented to support expenditures.Recommendation:We recommend the Organization:? Establish internal controls to obtain adequate third-party evidence to support eligibility. This documentation is to be signed by the applicant and the landlord, the one exception is the case manager may sign, but must accept responsibility that the information is complete.? Supervisory personnel should perform a secondary review of files and provide contemporaneous documentation of such review.? Supervisory personnel in accounting should perform a secondary review of payment requests to supporting documentation.? Consult with the third-party US Department of the Treasury regarding whether the known questioned cost identified should be repaid.
Findings and Questioned Costs for Federal AwardsC. Compliance FindingsCompliance findings relating to the major federal awards as required to be reported in accordance with Section 2 CFR-20.516(a) are:Department of the TreasuryAgency Rental Assistance ? CFDA 21.023See Finding 2021-001Questioned costs: $31,726Finding 2021-003 The Organization did not ensure that rental assistance payments were made to applicants with adequate third-party documentation of eligibility. No secondary review of the files was performed by supervisory personnel for the required compliance criteria and the checks issued were not reviewed in conjunction with the review of the application packet.Federal Awarding agency: US Department of the TreasuryPass-Through Entity: WA Department of Commerce2021-ComTRAP-CYS-RAApplicable Compliance Component: Eligibility and Internal ControlKnown Questioned Cost Amount: Application incorrect $ 9,169Incorrect number of months paid $22,557Total questioned costs $31,726Condition:We found the Organization had inadequate internal controls to ensure material compliance with the eligibility requirements. The program requires forms that must be completed and contemporaneously signed and dated. Case managers may take verbal information and are held to the same standard of contemporaneously signing and dating of the applicable documentation. From a random sample of 25 files from the 210 applicants, four files out of 25 (16%) did not contain adequate third-party supporting documentation to support eligibility. From that same sample, eight out of 25 files (32%) paid the incorrect amount of rent. There was no secondary review of files performed by supervisory personnel, so incomplete files were not corrected prior to the issuance of rental assistance payments. The check request for rental assistance payments was approved by the same person preparing the applicant file. Check signing supervisory personnel also did not review the applicant file.The prior year audit report was issued September 2022, the program ended June 2022. Therefore, the Organization did not have adequate time to implement any changes to the program.Cause: The Organization developed program guidelines, but did not incorporate adequate internal controls to ensure the compliance criteria that third-party evidence of existence was complete.Criteria:WA Department of Commerce Guidelines for the Treasury Rent Assistance Program (T-RAP), Version 4 August 2022:4.3.1 RentHouseholds can receive assistance with only future rent if the households do not have rental arrears and/or the provider has already assisted the household with rental arrears.An additional three months of future rent assistance can be provided if the household reapplies and is still experiencing housing instability, and has not already received the maximum amount of assistance.5.1 Documenting Household StatusHouseholds must demonstrate a risk of experiencing homelessness or housing instability. This MUST (auditor emphasis) be documented and may include:?Self-declaration signed and dated by the applicant. . .5.2 Documenting Income?. Adult household members that have no income can complete a self-declaration signed and dated by the applicant. A verbal verification of no income is allowable and MUST (auditor emphasis) be signed and dated by the case manager making the call.6.2 Payment Agreement FormThe Commence T-RAP Payment agreement Form MUST (auditor emphasis) be completed for households seeking financial assistance.Effect: From the sample audited, forty-four percent (44%) of the applicant files lacked adequate document to determine eligibility. Those files resulted in $85,414 in questioned costs in rental payment disbursements. Federal regulations require the auditor to issue a finding when the known or estimated questioned costs in a Singe Audit exceed $25,000.We question costs when we find an organization has not complied with grant regulations or when it does not have adequate documented to support expenditures.Recommendation:We recommend the Organization:? Establish internal controls to obtain adequate third-party evidence to support eligibility. This documentation is to be signed by the applicant and the landlord, the one exception is the case manager may sign, but must accept responsibility that the information is complete.? Supervisory personnel should perform a secondary review of files and provide contemporaneous documentation of such review.? Supervisory personnel in accounting should perform a secondary review of payment requests to supporting documentation.? Consult with the third-party US Department of the Treasury regarding whether the known questioned cost identified should be repaid.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.
Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing StandardsA. Material Weakness in Internal Control over Major ProgramFinding 2022-001 (reference Finding 2021-003Findings related to major federal awards required to be reported in accordance with Section 2 CDR-20.516(b):Department of the TreasuryAgency Rental Assistance ? CFDA 21.023B. Material Weakness in Internal ControlFinding related to the Financial Statement AuditFinding 2022-002 Internal Control over Cash Receipts and DisbursementsCondition:During audit procedures, we reviewed twelve months of bank statements and related reconciliations for the audit period. We noted the bank reconciliation supervisory approval process had not been performed for eleven months out of twelve months.Cause: The Organization did not have adequate supervisory review of month-end procedures to detect the bank reconciliations had not been performed in a timely manner. In addition, the prior year audit was issued in September 2022, limiting the time for compliance for the months of January through September 2022. October 2022 was reviewed timely, the months of November and December were not reviewed during the audit period.Criteria:Uniform Guidance Part 6 ? Internal ControlThe 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.Government Auditing Standards Chapter 5 Internal Control, Requirement: System of Quality Control5.04 An audit organization should document its quality control policies and procedures and communicate those policies and procedures to its personnel. The audit organization shoulddocument compliance with its quality control policies and procedures and maintain such documentation for a period of time sufficient to enable those performing monitoring.II Findings Relating to the Financial Statement Audit as Required to be Reported in Accordance with Generally Accepted Government Auditing Standards (continued)procedures and peer reviews to evaluate the extent to which the audit organization complies with its quality control policies and procedures.Effect: Bank reconciliations are an essential internal control and are necessary in preventing and detecting fraud. They identify accounting and bank errors and provide explanations of the differences between accounting and bank balance cash balances. Due to the small number of, and often remotely located, accounting personnel, this lack of oversite could be discovered by employees in performing their normal duties.Recommendation: Bank reconciliations should be prepared within 30 days of the receipt of the statement. Banks may not correct any errors (or fraud) that is not detected and reported within that time frame. The bank statement and bank reconciliation should be reviewed by a person other than the preparer and that person should initial and date as reviewed (or electronic procedure of comparable nature).The bank reconciliation balance should agree with the general ledger balance(s). In addition, both statements should be initialed and dated as approved by supervisory personnel.